Question
Suppose Potter Ltd. just issued a dividend of $2.56 per share on its common stock. The company paid dividends of $2.06, $2.13, $2.30, and $2.40
Suppose Potter Ltd. just issued a dividend of $2.56 per share on its common stock. The company paid dividends of $2.06, $2.13, $2.30, and $2.40 per share in the last four years.If the stock currently sells for $75, what is your best estimate of the company's cost of equity capital using arithmetic and geometric growth rates?
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Modern Portfolio Theory and Investment Analysis
Authors: Edwin Elton, Martin Gruber, Stephen Brown, William Goetzmann
9th edition
9781118805800, 1118469941, 1118805801, 978-1118469941
